A leading free-to-play powerhouseInterim report Second Quarter 2020

Jörgen LarssonCEO

jorgen@stillfront.com

Andreas UddmanCFO

andreas@stillfront.com

TODAY´S PRESENTERS

2

STILLFRONT AT A GLANCE

A leading free-to-play powerhouse of 14 gaming studios creating significant operational synergies

A diverse and evolving game portfolio with two common themes; loyal users and long lifecycle games

23 million MAUs and 5 million DAUs 23million

Main markets by revenue are US, Germany, MENA, UK and Canada

Headquartered in Stockholm with a group of 14 studios operating in Australia, Bulgaria, Canada, Germany, Jordan, Malta, Romania, Sweden, United States and Vietnam.+800

professionals

3

GLOBAL PRESENCE 14 GAME STUDIOS

North Am 48%

South Am 2%

Europe 33%

Asia 13%

Oceania 3%

Africa 1%

Offices

Sales

Note: Candywriter included since May 1, 2020.4

480 517 551691

1192

99 83 107 148 216

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

1579 1782 19672240

2952

346 365 397 438 554

Q2'19LTM

Q3'19LTM

Q4'19LTM

Q1'20LTM

Q2'20LTM

NET REVENUE, UAC DEVELOPMENT

Net Revenue, MSEKUAC, MSEKUAC, % of Net Revenue

Net revenue growth of

148%YoY

• Revenue growth driven by• Acquired studios Kixeye, Storm8 and Candywriter• Strong organic growth – high gaming activity across the portfolio

• Record return on user acquisition, paired with record spending levels• Increased level of live operations yielding stronger monetization in the

existing user base

UAC in relation to revenue

18%

22% 20% 20%20%

5

16% 19%21%

18%

21%

19%

527 604 645732

1028

Q2'19LTM

Q3'19LTM

Q4'19LTM

Q1'20LTM

Q2'20LTM

167 175 177 213

463

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

ADJ. EBIT DEVELOPMENT

Adj. EBIT, MSEKAdj. EBIT, % of Net Revenue

Adj. EBIT growth of

177%YoY

• Adj. EBIT growth driven by• Acquired studios Kixeye, Storm8 and Candywriter• Further improved product mix through the product area Casual & Mash-up• Strong organic growth and marketing investments on record levels yielded

positive results

Adj. EBIT in relation to revenue

39%

33%34% 33%

33%

35% 34% 32%31%

6

39% 35%

450 504 537664

1170

95 80 107 148 216

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

5612 5094 5795

9785

22794

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

ACTIVE PORTFOLIO: TOTAL

MAU ( ‘000)

COMMENTS

• A well diversified active portfolio consisting of 38 games in 3 product areas: Strategy; Simulation, RPG & Action; and Casual & Mash-up

• Strong performance in the quarter with increased MAU, ARPDAU and Bookings across all 3 product areas

• Storm8 and Candywriter (2 months) consolidation changes blended metrics:• Much larger user base with lower average monetization per active

user (lowering total ARPDAU in active portfolio)• User base is predominantly mobile, 75% of revenues mobile• Almost 50% of revenues from North American users

• 3% of total bookings (39 MSEK) from games not in active portfolio

+306% YoY MPU ( ‘000) 352% YoY DAU ( ‘000) +270% YoYARPDAU (SEK) -30% YoY

Book ings (MSEK) +160% YoYUAC (MSEK) +126% YoY

38GAMES

75%MOBILE

5%AD BOOKINGS

34%STRATEGY

22%

UAC, % o f Book ings

20%16%21%

7

1269 1262 1351

2214

4699

3.9 4.3 4.3

3.3 2.7

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

187 207 232365

846

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

18%

322279 299 318

398

53 41 54 63 76

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

29852482 2712 2853

3349

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

94 93 96 100116

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

544491 496 531

600

6.5 6.2 6.6 6.6 7.3

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

ACTIVE PORTFOLIO: STRATEGY

MAU ( ‘000)

COMMENTS

• Totals 34% of bookings in the active portfolio• YoY growth of 23% mainly driven by mid-sized products and Nida Harb III

• Call of War, Supremacy 1914 and Conflict of Nations, built on same game engine, all grew > 100% YoY, driven by strong momentum accelerated by Covid-19, particularly in North America

• Nida Harb III, fueled by Ramadan, became the largest Strategy game in the portfolio for the first time

• Imperia Online had an ATH bookings quarter (previous ATH in 2014)• EMPIRE: continued stable performance, Age of Knights continues global

soft launch

+12% YoY MPU ( ‘000) +23% YoY DAU ( ‘000) +10% YoYARPDAU (SEK) +12% YoY

Book ings (MSEK) +23% YoYUAC (MSEK) +43% YoY

12GAMES

61%MOBILE

0%AD BOOKINGS

25%ASIA

20%

UAC, % o f Book ings

18%15%17%

8

19%

2626 26123083

3604

5364

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

93114

136153

197

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

725 771 855972

1273

1.93.2 3.0 2.7 2.8

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

127

225 239 242

322

42 39 53 67 68

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

ACTIVE PORTFOLIO: SIMULATION, RPG & ACTION

MAU ( ‘000)

COMMENTS

• Totals 28% of bookings in the active portfolio

• Shakes & Fidget had ATH Bookings in Q2, driven by significantly improved monetization in addition to very strong marketing performance

• Continued strong YoY growth in 3rd year for Big Farm: Mobile Harvest

• War Storm (MENA-version of War Commander: Rogue Assault) launched

+104% YoY MPU ( ‘000) +113% YoY

18GAMES

58%MOBILE

2%AD BOOKINGS

47%EUROPE

DAU ( ‘000) +76% YoYARPDAU (SEK) +44% YoY

Book ings (MSEK) +153% YoYUAC (MSEK) +61% YoY

28%

UAC, % o f Book ings

22%17%

33%

9

21%

105

450

1772

Q4'19 Q1'20 Q2'20

112

533

Q4'19 Q1'20 Q2'20

711

2827

1.6 1.7

Q4'19 Q1'20 Q2'20

3327

14081

Q4'19 Q1'20 Q2'20

ACTIVE PORTFOLIO: CASUAL & MASH-UP

MAU ( ‘000)

COMMENTS

• Totals 38% of bookings in the active portfolio

• BitLife new game in portfolio, consolidated for two months in the quarter

• BitLife saw a decrease in ad revenue due to Covid-19, which was partially offset by increased amount of in-app purchases

• Storm8 marketing campaigns performed very well in Q2, driving strong growth in particular for Property Brothers, which became the largest game of the product area

MPU ( ‘000)

8GAMES

100%MOBILE

11%AD BOOKINGS

71%N.AMERICA

DAU ( ‘000)ARPDAU (SEK)

Book ings (MSEK)UAC (MSEK)

16%

UAC, % o f Book ings

16%

10

FINANCIAL HIGHLIGHTS Q2

Revenue growth of 148% - further increased revenue diversification

paired with Adj. EBIT margin of 39%

Cash generative business with 228 MSEK of free cashflow prior to

acquisitions and financing

Leverage ratio clearly below the group leverage target of 1.5x creating

financial flexibility

Strong financial position following 1,200 MSEK rights issue

Cash position at 936 MSEK and an undrawn long-term credit facility of

1,600 MSEK at quarter end

Strong underlying financial performance and a strong financing platform creates financial flexibility for further growth and market consolidation through M&A

0.37x

11

Q2 2020 Q2 2019Net revenue 1 192 480 148%OWC and Other Revenue 88 41 115%Total revenue 1 280 521 146%Platform Fees -343 -122 181%Gross Margin % 71% 75% 3 ppUser Acquisition Cost -216 -99 118%UAC/net revenue % -18% -21% -3 ppOther external expenses -47 -27 74%Personnel expenses -164 -76 115%IAC -33 -20 65%EBITDA 477 176 170%

Amortization of PPA items -94 -14 584%Depreciation, amortization and write-downs -47 -30 59%EBIT 336 133 153%Adj. EBIT1 463 167 177%IAC financial items -30 -5 478%Financial items ex IAC -54 -23 135%EBT 251 105 140%Taxes for the period -64 -31 104%Net result for the period 188 73 155%

INCOME STATEMENT Q2 2020

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1. Adjusted EBIT is defined as EBIT excluding items affecting comparability and amortization of PPA-items.

MSEK

BALANCE SHEET Q2 2020

13

Q2 2020 Q1 2020 31 Dec 2019Intangible non-current assets 8 897 7 852 13% 3 293 Tangible non-current assets 2 541 2 388 6% 1 158 Deferred tax assets & current receivables 720 642 12% 341 Cash and cash equivalents 936 472 98% 342 Total assets 10 679 9 072 18% 4 052 Total Shareholders’ equity 5 819 4 320 35% 1 959 Deferred tax & non-current liabilities 745 689 8% 330 Bonds loans & long-term credit facilities 1 602 2 257 -29% 1 115 Provision for earnouts long-term 938 1 076 -13% 125 Current liabilities 554 507 9% 316 Provision for earnouts short-term 1 021 223 358% 206

Total Liabilities and Shareholders’ equity 10 679 9 072 18% 4 052

Net debt 665 1 787 -63% 820 Adj. Leverage ratio, pro forma 0.37 1.15 -68% 0.91Adj. Interest coverage ratio, pro forma 17.85 22.68 -21% 11.69

MSEK

CASH FLOW Q2 2020

1. Free cashflow excludes acquisitions and financing activities and demonstrates underlying cash flow generation from the business. 2. All leases relate to offices which are needed to run operations, IFRS16 cashflow effect is recorded under financial activities under IFRS but here shown under CFFO to demonstrate underlying operational cashflow.3. Cash conversion ratio is defined as free cash flow divided by net profit.

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Q2 2020 Q2 2019 Q2 2020 LTM Q2 2019 LTM Cash flow as reportedCash flow from operations 344 140 145% 752 410 83%

Cash flow from investment activities -469 -1 037 -55% -3 018 -1 386 118%

Cash flow from financing activities 609 949 -36% 2 890 1 216 138%

Cash flow for the period 485 52 829% 624 240 160%

Free cash flow1

CFFO including IFRS 16 effect2 336 135 149% 725 399 82%- of which working capital movements -123 -14 796% -88 -25 249%

Investments in product development -107 -40 168% -351 -195 80%

Free cash flow (CFFO - Product development) 228 95 142% 375 204 83%

Net profit 188 73 155% 462 224 106%

Cash conversion ratio3 1.22 1.29 -5% 0.81 0.91 -11%

MSEK

AT THE FOREFRONT OF THE CONVERGING GAMING INDUSTRY

2bnplayers

Stillfront’s platform realizing synergies+50 active collaboration projects across the group

Increasing revenues and driving efficienciesgames in active

portfolio

3814studios

Increased addressable marketMirroring the industry composition

Well-diversified product-mixSolid presence in largest game genres (Mid-Core & Casual)

Strong growth across all three product areas

15

Accelerated growth agendaStrong combination of acquired and organic growth

M&A focus on well-run studios and long life-cycle games

group1